A new cryptocurrency exchange platform zigzag, has been launched to facilitate fast transaction of crypto at lower cost. The application associated with Bitlum utilizes Lightning Network (LN) technology to enable trading of top digital assets like Bitcoin Cash, Ethereum and DASH among others.
The Lightning Network facilitates instant blockchain transactions through a network of users. It is a decentralized network that employs the smart contract functionality to power the high speed transactions.
Users of this exchange platform will be required to make payments using any Lightning Network wallets which include Zap, Éclair, Lightning, or Htlc, same mechanism as Shapeshift. Unlike pioneer digital assets exchange operators and mainstream banks that request clients’ personal details upon registration, Zigzag only needs two cryptocurrency addresses to permit trading.
However, the technicality of operating the Lightning Technology among zigzag’s customers is a concern. “We highly appreciate the work of Lightning Network community. But there are still people out there for whom Lightning Network is hard to use, we think to introduce more people to Lightning there has to be a way to try it free of any technical expertise,” Zigzag’s developing team lamented on their blog.
The company rolled out a beta version of its zigzag’s application to fetch feedback and recommendations from its potential users. With the version, individual users are limited to a maximum exchange of $100. The company has so far received requests from users to lift the exchange limit of $100, add more trading assets and develop a reverse exchange.
Zigzag acted on the reverse exchange request and promised to list more trading assets in future although not urgently. However, the trading limited at the beta stage shall be maintained at $100 to limit company’s risks.
Developers of the platform alluded to developing a custodial wallet on the app’s alpha version where users can deposit various digital assets and trade without Lightning Network intervention.
Another crypto exchange operator utilizing the Lightning Network technology launched almost the same time with zigzag. Sparkswap, the brainchild of Trey Griffith utilizes Lightning Network and atomic cross-chain swaps to conduct high speed transactions at a relatively low cost.